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MCP posts threefold return on Europe play

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Mandarin Capital Partners (MCP), a Sino-European private equity joint venture backed by state-owned China Development Bank (CDB), aims to raise Euro1 billion (HK$10.4 billion) for its second fund this year, about three times the size of its maiden fund.

The fund-raising plan comes as the Shanghai-based firm sold a portfolio company in Europe to an Italian fund, giving MCP a threefold return on its original investment, according to its managing partner, Jenny Gao.

MCP said yesterday it was selling a 30 per cent stake in European pharmaceutical company Euticals to Clessidra, an Italian private equity fund, for about Euro67 million.

Based on the purchase price, MCP pocketed a profit of just over three times the original valuation in 2008 when MCP made its initial investment for 54 per cent of Euticals.

After the deal with Clessidra, MCP will still keep a 24 per cent stake in Euticals, whose clients and business partners include global health-care giants Roche and Pfizer.

MCP said feedback on the deal from its institutional investors, also known as limited partners in the private equity industry, had been good.

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